Political Action Update

 

Vol. 06-02

January 20, 2006

 

Education and Health Care Top Governor’s Agenda

Last State of the State Message for Vilsack

Governor Tom Vilsack utilized a theme of community in his final State of the State message which highlighted the opening week of the 2006 Iowa General Assembly.

Focus on Education

The Governor recommended a five year program to raise teacher pay in Iowa to the national average. Iowa currently ranks 41st in the nation, an all-time low for teacher pay in the state.  Last year, the average pay for Iowa teachers was $39,284, $8,524 below the national average.  The estimated cost of raising teacher pay to the national average ranges from $150 to $172 million.

Vilsack proposed early childhood initiatives including a plan to ensure that every four-year-old has access to quality pre-school.

The Governor commented on school restructuring and charter schools, and called for creation of a “Vanguard School Grant Program” to spur school transformation in Iowa.

Health Care

Addressing the high cost of health care, the Governor recommended legislation to allow small businesses to pool risks in order to more affordably offer health care to employees.  He called for the development of a state health care “reinsurance plan” similar to plans in place in New York and Arizona that would help spread the risk of catastrophic losses.  The reinsurance fund would be paid for with an increase in the tobacco tax.

Corrections

Without mentioning the recent prison escape, the Governor said “we must invest more in corrections so the prisoners that go into prison stay in prison.”  (Vilsack has since stated that he supports replacing the Fort Madison prison with a new facility and he has urged lawmakers to make a decision on a new prison this session.)

Environment and Energy

Soy diesel and E-85 ethanol were mentioned in the Governor’s speech, along with a call for legislation to expand the production and use of those products.

The Governor also put forward a plan to invest $50 million in “cleaning up our water, our rivers, our streams and our lakes.”

Other Issues

Vilsack proposed economic development efforts that included a new $50 million investment at Iowa universities to “spur innovation and creativity.”

The Governor recommended the removal of the ban on certain types of nuclear cell transplant research that the legislature passed and he signed several years ago.

The Governor also called for the adoption of a plan, similar to Minnesota’s, to make a one-time state payment of $10,000 to Iowa National Guard and Reserve soldiers seriously wounded in combat. (This legislation passed both Houses on January 18th.)

Mark Smith, President Iowa Federation of Labor, AFL-CIO

Response to Governor Vilsack’s State of the State Message

Condition of the State messages reflect not only the Governor's perception of major problems, but also the Governor's perception of the Legislature's willingness to do something about them.  This 2006 message was no exception.

Focusing on Iowa as a community, the Governor called for major initiatives in education and health care. They are commendable.  However, both cost money and it's hard to be optimistic about the Vilsack proposals, when House Republicans have a major Social Security-pension tax cut on a fast track and have also come out against the tobacco tax increase.


Omitted from the message were some folks in the Iowa community that have been left behind.  No call for a minimum wage increase for workers who haven't had a raise for nine years; no call for additional funding for LIHEAP for those who can't afford heat; no initiative to feed the hungry or house the homeless.  Presumably because his previous calls have been ignored.


BOX SCORE

Winners in the Bush Economy

Shareholder profits. Since the end of the recession, total corporate profits have grown nearly six times faster than hourly wages.
CEO pay. In 2004, the average CEO of a major company received $9.84 million in total compensation—a 12 percent increase over 2003 CEO pay.
The rich. Tax cuts for the very wealthy pushed by the Bush administration and its allies gave millionaires an average break of $103,000 last year—and two more millionaire tax cuts on tap will give them another $19,000 on average.

Tough Choices?

      Sometime soon, the U.S. House of Representatives is expected to vote on the budget that the Senate passed on December 21 and the House passed in a slightly different version on December 19.  That legislation would make significant cuts in a number of programs serving low- and moderate-income families and individuals, including Medicaid, child support enforcement, and student loans.

Supporters of the legislation defend the cuts as tough choicesthat need to be made because of large and growing budget deficits.  These claims are undercut by the fact that, in late 2005, the House passed four tax-cut bills that together cost more than twice what the budget reconciliation bill saves.  The claims are further undermined by Congress’s unwillingness to rethink any previously enacted tax cuts as part of its supposed reevaluation of priorities in light of deficits.

Courtesy: Center for Budget and Policy Priorities

Quotable

“Lately, what has been of great concern, in addition to what I’ve already said, is the merger of...religion and politics. Because I happen to be a Christian and I think my religion teaches me that you should render unto Caesar the things that are Caesar’s and unto God the things that are God’s.  Thomas Jefferson, one of our Founding Fathers, said that we should build a wall between the church and state.  That wall is being deliberately and ostentatiously, not secretly, broken down.  So, there has been an increasing merger in this country of fundamentalism on the religious side, fundamentalism on the political side, and the two have come together.”

—Former President Jimmy Carter

On the Dec. 5, 2006 “Daily Show”


Who’s On Our Side In Washington?

91%

80%

34%

13%

13%

7%

7%

Senator Tom Harkin

Representative Leonard Boswell

Representative Jim Leach

Senator Charles Grassley

Representative Jim Nussle

Representative Steve King

Representative Tom Latham

Iowa is one of ten states the AFL-CIO is targeting in its “Who’s On Our Side” campaign.  The campaign focuses on holding Congressional officials accountable by publicizing their votes on issues that most directly affect workers and their families.  A Midterm Report Card on each Congressman has been prepared based on issues including: jobs and wages, retirement security, health care, tax fairness, and education.

      The Report Cards are available on-line at

 www.aflcio.org/issues/legislativealert/reportcards.cfm.

“Working families, with the facts in hand, have the power to...make sure we are represented by leaders who are fighting for our best interests—and not the special interests—every day,” said Richard Trumka, AFL-CIO Secretary-Treasurer.

Shown above are the Iowa members of the U.S. Senate and the U.S. House of Representatives.  The percentage listed above each photo is that Congressman’s lifetime record of voting in support of the  AFL-CIO position.

Congressmen Boswell, Leach, King and Latham are seeking reelection in 2006, and Congressman Nussle, who currently represents the First Congressional District in eastern Iowa is seeking the Republican nomination for Governor.


Fair Share Health Care Act

Becomes Law in Maryland

Measure is Similar to Iowa AFL-CIO Proposal

Maryland became the first state in the nation to pass the Fair Share Health Care Act when the Maryland Legislature voted to override the Governor’s earlier veto of the bill.  Similar legislation, backed by the Iowa Federation of Labor, AFL-CIO, is currently being drafted and will be introduced soon in Iowa.

      The Maryland bill requires large employers (over 10,000 employees) to spend 8 percent of their payroll on health care for their workers.  If they don’t spend 8 percent on health care, they then must pay the shortfall, up to the 8 percent threshold, into a state fund to help cover the cost of the medical care provided by the state to workers and the families of workers who lack adequate health care coverage.  Of the four employers in Maryland with more than 10,000 workers, only Wal-Mart fails to meet the 8 percent threshold for employee health care.

Wal-Mart made $10 billion last year in profits, yet 46 percent of the children of Wal-Mart’s 1.33 million U.S. workers are either uninsured or on Medicaid, according to Wal-Mart’s own information. In addition, fewer than half of Wal-Mart’s workers have health care coverage on the job, according to an October 2003 AFL-CIO report.  As a result, many Wal-Mart workers and their families are forced to turn to public health services and emergency rooms for their health care.  Iowa is no exception, where an estimated 850 Wal-Mart workers rely on Medicaid for their health care.  

Iowa is one of 33 states with a Fair Share Health Care campaign underway to ensure that large corporations stop shifting health care insurance costs onto workers, taxpayers and other businesses.  Fair Share Health Care legislation will reduce the bill taxpayers pay to cover profitable corporations’ employee expenses, thus easing the financial strain states face in growing Medicaid costs.  Just as importantly, it will help level the playing field between companies that provide good jobs and benefits and those that don’t.


What if Bush Told the Truth About the Economy?

A summary of  remarks from John Sweeney’s January 18th address to the National Press Club.

When President George W. Bush makes his 2006 State of the Union speech, he is expected to paint a rosy picture of the nation’s economic future.

“But what if he told the American people the truth?” Sweeney asked.

Sweeney said Bush won’t do that because the truth would involve admitting “we are barely creating enough new jobs to match the growth in our workforce—and increasingly, the jobs we are generating are dead-end alleys. Our trade policies have translated into over 2 million lost manufacturing jobs…just since 1998, our debt to other countries is rising by more than $1 million a minute and almost $700 billion in U.S. Treasury notes are held by China alone.”

According to The New York Times writer Louis Uchitelle, author of The Disposable American, due out from Knopf in March, more than 30 million workers were involuntarily displaced from their jobs between 1980 and 2001.

“Far more than in the past, America lives with a chronically floating, low-wage workforce, one that would not exist if the deterioration in pay and training, and the acquiescence to layoffs, had not made inroads into the dignity of work,” Uchitelle writes. And just today, the U.S. Bureau of Labor Statistics revealed that U.S. workers’ inflation-adjusted average hourly earnings declined 0.5 percent in 2005.

To stem the flood of job loss, Sweeney said the nation must reverse its trade policies and demand that rights for workers receive the same protections as corporate interests in all trade agreements. In addition, new laws should be enacted to make it illegal for companies to buy or sell merchandise or services manufactured or provided under sweatshop working conditions.

Also, Sweeney said tax laws that encourage corporations to send jobs overseas should be repealed and all goods and services paid for with tax dollars should be produced or provided in this country.

 Courtesy: Work in Progress


 

Labor Center

THE  UNIVERSITY  OF   IOWA

In cooperation with the Iowa State Building and Construction Trades Council and the Iowa Federation of Labor, AFL-CIO presents a conference for union members.

Issues for Building Trades Unions

A one day program for union leaders covering the key issues and challenges facing organized labor in the building and construction trades.  Topics include:

  • Health Insurance: monitoring claims experience and analyzing health insurance cost increases, health insurance trends, and union welfare fund strategies to combat rising health insurance costs.

  • Picketing: a refresher on the “ins and outs” of picketing job sites.

  • Labor law update: an overview of recent NLRB and other court rulings impacting the building trades.

  • Legislation: the latest on legislative issues affecting the building trades.

  • Other building trade issues.

WHEN:       Tuesday, March 28
WHERE: Sheraton Hotel, Downtown Iowa City (210 South Dubuque Street)
TIME:  Sign-in from 8:30 a.m. to 9:00 a.m.  Program ends at 4:30 p.m.
COST:   $100 per person (does not include meals or housing, see below)
DEADLINE:  Please Register by February 28, 2006 


To register:

Housing Policy: You will need to reserve and pay for your own housing directly with the Iowa House Hotel at (319) 335-3513.  A block of rooms is being held under “Labor Center” until February 16, 2006 at an approximate rate of $70 per night, plus taxes.


Iowa Federation of Labor, AFL-CIO

Legislative Hospitality

Monday Evenings

5:00 - 7:00

Machinists Hall

2000 Walker Street

Iowa Federation of Labor, AFL-CIO

Lobbyist Meeting

10:30 Monday Morning

During the Legislative Session

2000 Walker Street

Des Moines, Iowa

Iowa Federation of Labor, AFL-CIO

Annual

Legislative Conference

February 27 - March 1

Adventureland Inn

Altoona, Iowa

Iowa Federation of Labor, AFL-CIO

 

C.O.P.E. Convention

March 25

 USW Local 310 Hall

 125 NW Broadway

Des Moines, Iowa



Join our e-activist group

Receive the Iowa AFL-CIO News and the Political Action Update, as well as press releases and announcements, as a member of our e-mail group.

Visit our link to sign up for our activist group or if you have changed your e-mail or other contact information.

Help us stay in touch!